Champion Breweries’ Deposit Interest Limits Impact Of Rising Expenses On Profit

March 31, 2026
Champion Brew’s Majority Shareholder Sells Off 350m Shares, Profits From Bullish Run

Champion Breweries recorded an impressive topline and interest income growth in 2025, shielding the company’s bottom line from rising borrowing cost and other expenses.

According to the company’s annual report and financial statements for the year ended December 31, 2025, Champion Breweries’ revenue grew by 43 percent to N29.79 billion last year, surpassing the N20.89 billion generated in 2024.

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The top line outgrew cost of sales, which jumped by 18.53 percent to N14.42 billion in 2025, compared to the N12.17 billion gulped by production cost between January and December of the year before.

This led to the brewer recording a 76.29 percent growth in gross profit, which grew to N15,37 billion between the first quarter (Q1) and the fourth quarter (Q4) of last year, exceeding the N8.71 billion achieved in 2024.

However, Champion Breweries sustained other losses of N24.36 million during the period under review, failing to achieve the N68.85 million other gains recorded in 2024.

In the statement, Prime Business Africa (PBA) gathered that Champion Breweries’ incurred selling and distribution expenses of N6.51 billion in 2025, compared to the N4.06 billion spent on the same category in 2024.

While selling and distribution expenses increased by 60.25 percent year-on-year, administrative expenses grew by 64.76 percent, as it gulped N3.96 billion in 2025, surpassing the N2.40 billion sustained the year before.

Despite the double-digit growth in administrative, selling and distribution expenses, the drink producer saw a 107 percent increase in operating profit, which climbed to N4.82 billion in 2025, compared to the previous year’s N2.32 billion.

The company also offset the expenses with a 2,709.31 percent growth in finance income — driven by interest earned on savings and fixed deposits — as it surged to N437.94 million last year, exceeding the N15.58 million gotten in 2024.

Although finance costs, which consist of interest on loan, also took a chunk from Champion Breweries’ earnings, as the former increased by 144.56 percent year-on-year, from N1.06 billion to N2.61 billion.

Regardless, the brewer saw its profit before tax surge to N2.65 billion in 2025, surpassing the N1.27 billion recorded in 2024, indicating a 108 percent growth.

In response, income tax went up by 89 percent to N861.92 million during the period under review, compared to the N457.05 million tax paid for the period between the first quarter and the fourth quarter of 2024.

Consequently, Champion Breweries recorded N1.78 billion profit after tax (PAT) in 2025, which increased by 119 percent when compared to the N816.99 million achieved the year before.

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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

Prime Business Africa

Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

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